Report your side income
This one might cause a headache now, but can prevent worse ones down the road. If you earned income on top of a W-2 paycheck, like for a gig you performed as an independent contractor, you need to report that income—even if you didn’t get a 1099 for it.
“All income, no matter the amount, earned through a business, as an independent contractor or from informal side jobs, is self-employment income which is fully taxable and must be reported,” Flores said, “If you earned at least $400 income through a business, as an independent contractor or from informal side jobs as a self-employed individual, you must also pay self-employment tax.”
Sure, if you made a few bucks mowing lawns for your neighbors, you can probably get away without reporting that income. But you’ll want to make sure you report anything that has a paper trail (digital or otherwise) to avoid the chance of an audit .